FICCI Projects India's FY25 GDP Growth at 6.4%

The Federation of Indian Chambers of Commerce & Industry (FICCI) has revised India's GDP growth projection for FY25 to 6.4%, down from 7%, attributing this to ongoing domestic challenges and global economic headwinds. The Economic Outlook Survey predicts a growth uptick in the second half of the fiscal year driven by increased public capital expenditure and improved industrial activity. Sector-wise, agriculture is expected to grow at 3.6%, industry at 6.3%, and services at 7.3%. Meanwhile, the World Bank projects a slightly higher growth rate of 6.5% for FY25, with India maintaining its position as the fastest-growing major economy. The World Bank emphasizes the resilience of the services sector and private consumption, bolstered by rising rural incomes and government initiatives. Despite a slowdown in overall investment, the outlook remains cautiously optimistic for both FICCI and the World Bank, highlighting the importance of government-led capital expenditure in driving economic momentum.